InvestorQ : What are the new regulations of SEBI pertaining to Financial advisors?
Deepa Salunkhe made post

What are the new regulations of SEBI pertaining to Financial advisors?

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Juvina Maggie answered.
11 months ago
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SEBI has introduced client level segregation and also barred the same entity from providing distribution and advisory service to avoid any conflict of interest. In the past, there used to be a clear conflict of interest in most cases as the distribution relationship made it tough for the individual to give unbiased and focused advice to clients.

SEBI has also increased the net worth requirements of the entity as also enhanced the qualification standards for the RIA. SEBI has avoided the delicate topic of quantum of fees and left it to negotiations. Also, non-RIAs cannot describe themselves as wealth advisors or independent financial advisor while pitching their services to clients.

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Subhash Chander answered.
11 months ago
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Sebi tightens norms for investment advisers to prevent mis-selling. MUMBAI: The markets regulator on Monday barred investment advisers from simultaneously selling financial products and advisory services, and capped the fees they can charge their clients, in an attempt to curb mis-selling and protect investors.

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